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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteLabor shortages can raise a contractor’s labor assumptions, make it harder to secure crews when the schedule requires them, and increase the risk of project delays. In an Associated General Contractors of America (AGC) and NCCER survey conducted in July and August 2026, 42% of respondents said shortages of their own or subcontractors’ workers had delayed projects. A separate AGC outlook survey found that insufficient worker supply and rising direct labor costs were major concerns for 57% and 56% of respondents, respectively. These are survey measures of reported experience and concern—not a universal cost increase, delay duration, or bid premium.
What labor shortages mean for a construction project
A labor shortage is a gap between the qualified workers a project needs and the workers available to perform the work at the required time and place. The gap may affect a contractor’s own employees, a subcontractor’s crew, or a particular trade, credential, or license. A project can face a shortage even when workers are available elsewhere: location, skills, timing, and qualification requirements matter.
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That distinction is important because construction work is sequenced. If a needed crew cannot start when planned, dependent work may have to wait or be resequenced. If qualified workers are difficult to recruit or retain, a contractor may also need to revise its pay, benefits, or staffing assumptions. Those are practical ways shortages can affect cost and schedule, but the national surveys below do not isolate the precise causal effect on any particular project.
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Labor scarcity and wage pressure are related, but they are not identical. A contractor might have trouble securing a qualified crew for a specific window without knowing that wages have risen by a particular amount. Conversely, compensation assumptions can change even if a project’s schedule is not yet affected. Estimators should assess both availability and cost rather than treating one survey statistic as a proxy for the other.
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What recent construction workforce surveys show
Reported delays and workforce concerns in 2026
In the July–August 2026 workforce survey by AGC and NCCER, 42% of respondents said shortages of their own or subcontractors’ workers had delayed projects. In the same survey, 74% reported at least one significant project delay during the preceding year. Worker shortages remained the most commonly reported cause of project delays in the release. The two percentages describe respondents’ reports; they do not mean that 42% of all construction projects were delayed by shortages or that 74% experienced a labor-related delay. The survey does not quantify delay length or dollar impact. AGC and NCCER’s 2026 workforce survey release
The distinction between the figures matters: 42% refers to respondents reporting delays from workforce shortages, while 74% refers to respondents reporting any significant delay in the prior year. The larger number is not a measure of labor-related delay. Neither percentage tells a project team how many days a shortage added, how much it cost, or whether a particular site will face the same issue.
Contractor concerns for 2026
AGC’s 2026 Construction Hiring and Business Outlook survey received 951 responses from firms in 49 states and the District of Columbia. The survey ran from November 4 through December 15, 2025. For 2026, 57% of respondents named an insufficient supply of workers or subcontractors as a major concern; 56% named rising direct labor costs as a major concern. In the report, direct labor costs include pay, benefits, and employer taxes. These figures indicate what respondents were concerned about, not the actual increase in wages or a measured effect on bids. AGC’s 2026 outlook survey
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →The two outlook measures should be read as separate concerns, not as proof that a given contractor faced both on every job. They also do not represent an hourly wage index or a forecast of how much a project will cost. Their value is in showing that respondents viewed both staffing supply and direct labor cost as important business issues when planning for 2026.
How the 2025 results compare
In AGC and NCCER’s 2025 workforce survey, 92% of contractor respondents reported difficulty filling open positions, and 45% reported project delays due to worker shortages. The 2025 release also said 57% of firms found that available candidates lacked essential skills or an appropriate certificate or license. These results provide context for the later survey, but they should not be treated as a direct year-over-year trend: the surveys were conducted in different years and may reflect different samples and conditions. AGC and NCCER’s 2025 workforce survey release
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How shortages can affect construction costs
When qualified workers are scarce, contractors may have to compete more actively to recruit or retain them. Pay, benefits, and employer taxes are components of direct labor cost, so increases in those assumptions can affect the estimated cost of the work. Scarcity can also create uncertainty about whether a planned crew can be assembled for the dates and duration in the estimate. These are project-level estimating considerations, not a national cost multiplier established by the surveys.
A shortage can affect an estimate through more than the wage line. A crew that cannot be secured for the planned dates may require a contractor to reconsider the staffing plan, the sequence of work, or the schedule assumptions behind labor quantities. Any change should be grounded in project-specific information: for example, the trade involved, local worker availability, the subcontractor’s stated capacity, and the duration for which the crew is needed. The cited surveys do not support assigning a set dollar value to these risks.
Labor is only one part of construction cost. Material prices, financing conditions, project demand, tariffs, location, productivity, project type, and other market conditions may also affect a budget or bid. The cited surveys do not separate labor’s contribution from those factors or establish how much a specific project’s cost changed because of a shortage. A contractor should therefore use local wage, benefit, and subcontractor information rather than applying a standard percentage increase based on national concern figures.
How shortages create schedule risk
A shortage can become a schedule problem when a required trade or subcontractor cannot provide the crew at the planned time. The resulting constraint may affect the start of that work and the tasks that depend on its completion. Depending on the project, the contractor may have room to resequence work; in other cases, the affected activity may sit on the critical path and threaten a milestone or completion date.
The 2026 workforce survey establishes that respondents reported delays associated with worker shortages, but it does not give a typical number of days or weeks added. Nor does the 74% figure identify labor as the cause of every significant delay respondents reported. Any forecast should be based on the project’s actual trade availability, planned sequence, and schedule logic—not on an assumed standard delay duration.
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When reviewing schedule exposure, distinguish between an activity that can move without affecting a key date and one with little or no available float. A potential crew gap is more consequential when it affects a dependent activity or an agreed milestone. This is a project-planning distinction, not a claim that every labor constraint will delay completion: the effect depends on the work sequence and the available alternatives.
How contractors can account for labor shortages in a bid
There is no single bid premium supported by the survey findings. Instead, contractors can make the estimate more realistic by checking the labor and schedule assumptions on which the price depends.
- Check availability by trade, location, and timing. Identify which qualified crews are required, when each must be on site, and whether the contractor or subcontractors can cover those dates. General availability in a region does not establish availability for a particular trade or project window.
- Validate wage and employment-cost assumptions. Review the pay, benefits, and employer taxes included in the estimate against current local information and the expected duration of the work. Make clear which assumptions are estimates and which are backed by a firm commitment.
- Confirm subcontractor coverage. Ask whether the proposed subcontractor has the crew capacity and qualifications for the planned scope and sequence. A quoted price without credible staffing for the required dates may not represent a reliable schedule assumption.
- Test the schedule logic. Identify activities dependent on constrained trades, the available float, and any milestone or completion-date exposure. Consider whether work can be resequenced without creating quality, coordination, or safety problems.
- Make risk allocation explicit. Review how the bid and contract address labor availability, schedule obligations, and changes in assumptions. Any contingency or allowance should reflect project-specific evidence and the agreed allocation of risk, rather than an unsupported standard percentage.
- Record assumptions and revisit them before commitment. Keep a clear record of crew dates, wage assumptions, subcontractor coverage, and schedule dependencies. If availability or costs change before award or mobilization, update the estimate and schedule rather than relying on stale assumptions.
For a comparison of bids or project options, use the same practical axes for each: qualified labor availability by trade and location; wage, benefit, and subcontractor assumptions; schedule and sequencing exposure; how contingency and contract terms allocate risk; and the quality or credential requirements of the work. These are decision criteria, not survey findings. A lower quoted price alone does not establish that the staffing and schedule assumptions behind it are comparable.
These checks are decision practices, not proof that a particular contingency, contract term, or scheduling approach will eliminate shortages or prevent delay. The right response depends on the work, local market, and commitments available for the project.
Why qualified-worker availability matters
Headcount alone does not show whether a contractor can staff a project. A candidate may be unavailable at the needed time or may lack the skills, certificate, or license required for the work. That helps explain why a project’s labor risk should be assessed by trade and qualification, not only by the number of workers in a broad labor market.
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In the September 3, 2026 workforce survey release, AGC chief economist Ken Simonson said: “The need for people to work on new data centers is keeping labor conditions tight even as demand for many other types of projects remains relatively soft.” The observation illustrates why conditions can differ across project types even within a broader market. It is not evidence that every type of construction faces the same level of labor pressure.
Simonson also said: “Half of respondents report that available candidates are not qualified to work in the industry because they lack needed skills, certificates or licenses.” The statement points to a qualification issue as well as a headcount issue. A project team should still check the requirements for its own scope and local market; the quote does not establish that half of candidates for every trade or project are unqualified.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the survey figures can—and cannot—tell a project team
- They can indicate how widely contractors report a concern. The 2026 surveys show that workforce supply, direct labor costs, and labor-related delays were salient issues for respondents.
- They cannot price a specific project. Concern shares do not reveal a project’s wage increase, total cost impact, or appropriate bid contingency.
- They cannot predict a standard delay. Respondent reports of delays do not establish how long a given project will be affected.
- They do not describe every local market. Conditions vary by trade, geography, project type, and contractor size. A national survey finding is context, not a substitute for local staffing and wage evidence.
For a project-specific decision, the most useful evidence is current information about qualified worker availability, subcontractor commitments, local compensation assumptions, and the schedule’s exposure to those crews. Treat the surveys as a reason to test assumptions, not a substitute for those checks.
Estimating and scheduling references
For general construction-management context, Pearson lists Construction Project Management, 5th edition, by Frederick Gould and Nancy Joyce, published in 2022. Its coverage includes bidding and procurement, cost estimating, planning and scheduling, and cost, time, and quality control. It is a broad project-management reference, not a labor-shortage remedy or evidence for a particular bid adjustment. Pearson’s book listing
Frequently Asked Questions
How do labor shortages affect construction costs?
They can put pressure on a contractor’s pay, benefits, and employer-tax assumptions and create uncertainty about securing crews for planned dates. The cited AGC surveys measure reported concern, not a universal cost increase; project teams need local wage and staffing information to estimate a specific job.
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Do construction labor shortages delay projects?
They can. In AGC and NCCER’s July–August 2026 workforce survey, 42% of respondents said shortages of their own or subcontractors’ workers had delayed projects. That is a share of survey respondents, not a share of all projects, and the survey does not give a typical delay duration.
How should contractors account for labor shortages in a bid?
Check qualified crew availability by trade, location, and timing; validate local pay, benefits, and employer-tax assumptions; confirm subcontractor capacity; test schedule dependencies and float; and make risk allocation and assumptions explicit. The cited surveys establish no standard shortage premium.
Why are construction wages rising?
AGC’s 2026 outlook survey found that rising direct labor costs were a major concern for 56% of respondents. In the report, direct labor costs include pay, benefits, and employer taxes. It does not establish a national wage increase or isolate a single cause, so use current local compensation information rather than inferring a rate from the survey.
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How can contractors keep projects on schedule when workers are hard to find?
The evidence supports checking crew availability against the planned sequence, identifying dependent activities and milestone exposure, and confirming subcontractor coverage for required dates. Whether resequencing is feasible depends on the project; the surveys do not show that any one response will prevent delays.
The Bottom Line
Labor shortages can raise direct labor assumptions and create schedule risk, but the available survey results do not establish a standard cost increase, bid premium, or number of delay days. Use the AGC findings as context, then test each project’s qualified labor availability, local compensation, subcontractor commitments, and schedule dependencies before pricing or promising a completion date.
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